Stock market UK: Bad exchange rate losses for banks

Among the major stock markets of the world, the British stock market performs currently weak. She has recovered from the brutal Corona of a burglary in March, o

Stock market UK: Bad exchange rate losses for banks

Among the major stock markets of the world, the British stock market performs currently weak. She has recovered from the brutal Corona of a burglary in March, only about half. Much stronger the recovery in the German stock market. The Dax reached in the meantime, back to the level from the beginning of the year, currently, he is a good 6 percent. The American S&P Index is slightly above its value at the beginning of the year.

Philip Plickert

economic correspondent based in London.

F. A. Z.

in Contrast, the thickness of a Minus dominating in the British FTSE-Pay. Currently the FTSE100, which represents the hundred largest companies on the London stock exchange, with a little over 6000 points, still 20 percent lower than at the beginning of the year.Of the major European exchanges and the Spanish stock market looks even worse, Madrid's Ibex35 is up 29 percent since the beginning of the year. The French and the Italian stock market have recovered, with another 20 percent Minus (CAC40) and 19 percent (MIB) is slightly better than London from the March slump, the Dutch stock market is significantly better (AEX 10 percent).

UK shares a particularly bad choice

with an Account of the pound-devaluation, as the British share of international investors in this year was a particularly bad choice. "The FTSE says there is a clear Under-Performer is in Britain a little more pronounced Concerns about economic development," Peter Dixon, Economist at Commerzbank in London. The brutal Corona of a recession, caused by the Virus and the Lockdown, strikes in the UK are still lower than in most developed economies. In the second quarter, the economy line, which is dominated by service industries could be collapsed, by 20 percent quarter-on-quarter, estimates Dixon.

"it is Not only the Corona, the Brexit factor weighing on the market," he adds. Dixon doesn't believe that the UK leaves the end of the year, the EU's internal market without a trade agreement, but the risk of a particularly hard Brexits is feared by many. Some analysts believe, however, that the FTSE will recover this year, slowly. Goldman Sachs, for example, as forecast in the three months, a level of 6200 points, so about 5 per cent Plus, and in six months 6300 points.

FTSE100 -- -- (--) BNP Paribas 1T 1W 3M 1J 3J 5J For detail view

The worst losses on the London stock exchange the shares of the banks suffered in this year. On average, they lost more than 45 percent of its value, the banking sector is the industry of the conclusion of light in the FTSE100 shows a Goldman-Overview, surpassed only by the losses of the few publicly-traded automotive supplier. On Monday, the share price of HSBC fell after poor quarterly figures by 4 percent. The profit of the British-Asian Bank fell in the second quarter, 96 per cent, due to the billions in risk provisions for bad loans is. Also, Barclays and Lloyds have put aside billions and last week with their quarterly investors figures surprised negatively, although Barclays was able to report slightly positive earnings.

The second worst sector in the FTSE100 are in the Oil and gas companies with the heavy-weights of BP (minus 42 percent) and Royal Dutch Shell (minus 50 per cent since the turn of the year). They have written off tens of billions on the balance sheet value of their Oil and gas fields and refineries, because they expect a permanently lower prices for fossil energy resources. The third sector, with an average of more than 40 percent loss Rate on the London stock exchange since the beginning of the year are the companies in the travel, airline and leisure industries.

British Airways parent company IAG has lost 75 percent of its market value since the beginning of the year, because now, it is expected that air travel will still need several years before they can recover from the Corona break-in. The share of the aircraft engine manufacturer Rolls-Royce has fallen by almost 70 percent. Slightly worse than the FTSE average of minus 20 per cent since the beginning of the year, media, telecommunications, real estate and insurance are also values.

Updated Date: 04 August 2020, 11:20

You need to login to comment.

Please register or login.

RELATED NEWS